All Forum Posts by: Todd Anderson

@Cyndi Lees,

It sounds like you have a good problem with a number of choices.  Your choices will depend on what you are looking to get from the property.

STR is becoming more difficult in many areas. You may need to look into this in the area where your property is now. Many areas are becoming saturated and the laws are changing. This would be a concern for the existing property and any other turn key you may find for STR.

Many of the investors that I work with prefer the LTR strategy.  It may make less cash flow/ per month but in may cases in the long run after PM fees and Repair costs, many times it turns out similar.   This may also be an easier option if you are planning on leaving the country.   With a property that is paid off, the cash flow should be there.  

If this property is not in a great area for that or if the the property is in need or repair/ update,  then maybe the option of trading the property to a newer bigger Ltr is a good plan.  With that kind of equity you would be to find a newer, nicely performing Quad in a market that is appreciating.  This might be a better situation if you are leaving the country.

Just some other thoughts.  Best of luck.

@Matt Schreiber,

I have found the same thing in a number of markets. It is tough to find an MLS deal cash flow if you have to pay market interest rates.

I have looked to New Construction to solve for this problem.  The investors I work with find that builders are able to incentivise their product to keep it moving and do what they do best.  We have been able to find turnkey deals that have incentives that solve for the biggest problems in today's market, Interest rate and cash flow.   One of the reasons that they can do this is the builders that i have worked with are moving their product off market.

There are definitely deals sill out there, in a number of markets, and there is also cash flow in deals out there.  We just may have to change the way we look for those deals. 

Best of luck.   Connect for more info.

@Jade Frank,

Congrats on making the decision to start your REI journey. The Bp community is a great place to get information.

I have worked with a number of investors who are very happy investing in NC.  There was just a BP pole that rated NC as one of the top growing investment markets.  Whatever way you go if the deal is right it will work in these two markets.

Best of luck to you.

@Robel Nessro

Great plan.  Thanks for the thought of service to the country.

Getting a well performing quad would be great to season for 4 years.  If you buy in the right market you will be able to get some equity out of it and make your next deal.  

Look for a market that is growing in population and jobs so that you can get in the way of obvious appreciation.  That way you can take advantage of the tenants paying down your mortgage and the appreciation of the property .

Best of Luck.

@Paul Garrido

Welcome to the BP community.  @Jason Dillard that is a great point that many investors fall to look at when making this type of decision.  What is the return on equity.  If you have mony in the deal and it is no longer bringing a proper return it may be time to move that money into another property that will return more.  

We have a great event coming up with a great BP partner.  We are having a webinar on tuesday with PropertyLLama.  They have a system that tracks this exact thing, so an investor can see exactly how the investment is performing.  

let me know if you are interested in a link.  Best of Luck

@LaShon Evans,

I would agree with others for the first time I'm not sure long distance management is a good idea.  It can work if you have experience and a local team to help.  

I know that we have connected DM me so that we can talk about how we have solved this for most of our investors.  one of the incentives we can offer is free property management.

let me know if i can help answer any questions.

@Lawrence Mitchell,

Welcome to the BP community.  This a great place to get started.  For most people a house hack is a great start.  We happened to have just added some inventory in the Birmingham market.  It looks very interesting.

Best of luck getting started and let me know if you have more questions.

@Austin Wood, This is a continuing growing segment in REI. @Ryan Arth, this is exactly what a number of investors I have talked with lately have found.  The market for new developments of Build to Rent units are growing.  We have been talking with investors that are interested in taking on these types of projects at different stages of the development.  

Most of the builders that we are working with now, in this space are doing just that.  Building the project if they find an interested party to take it on fine.  If not they will bring the project to the rental market.

If done right these communities are sought after by renters as well.  It offers them a new property in an area of like minded people.  

Best of luck moving forward.  

@Kevin Stearns,

Looks like you have a lot of irons in the fire.  This looks like some exciting projects you have planned.  

I can only add some general comments to this.  I would strongly recommend the investment into Multi family units or Storage units, the other two of your thoughts although many times work out great have a lot of risk attached. 

I have done many of the projects that you are looking at but not in your area. I don't have any local expertise in the right people to help. One thing that may help you in a number of the questions, when I sold my business 3 years ago I looked at the new and growing strategy of Build to Rent communities. I think we will find that this will be a growing sector of REI. For an investment vehicle it offers one main advantage over traditional Multi Family in that you have much more flexibility in exit. You can sell the the entire development if that fits your strategy or you can break the development up and sell the parts.

As for the additional considerations.  It will be greatly beneficial to have your wife become a Real Estate Professional.  That way you can maximise the benefits of the cost segregation. I have used two online companies to do cost Seg's.  DM me if you want contacts.  I have worked a lot over the years with CCIM.  I feel it is a great organisation to learn from.  Years ago I carried a designation, it didn't do much for me at the time but, the people there are great and very knowledgeable about their subjects.  Anytime you are learning it is beneficial.

Best of luck with all your ventures.  I am in a New Construction Investment space now and would be happy to help in any way.  

@Jenna Chen,

Congrats at making your start in REI. The community at BP is a great place to start.

It looks like you are on the right track with your strategy.  i would recomend this to most new incestoes.  Do you have a W2 job in Atlanta?

Best of luck.